Guest Columnist Scott MacKillop

I agree advisors should not be worried- but it changes the game.  Advisors will need to disclose how they are compensated and for what.  They will also be on the hook for a reasonable amount of documentation to defend they are acting in client's best interest.  'Any decision is a good decision as long as you can defend it'.

It does change the game and won't allow advisors to hide the ball...tough shit

I agree with "most" of the rule.  Our industry is changing, and It really doesnt matter if the rule passes or not, the clients that we want to work with will demand that we are fiduciaries.

Steve, Yours is a defensible position but I think it matters. A whole series of events led to this rule with the 2008-2009 crisis as a rallying point, and maybe Enron. Then there was an enlightened crowd at DOL and a president who supported them. There were people like Ron Rhoades and dozens of others who gave their heart to arguing the point forward when it looked futile. My point is that such a series of events may not come along again. The rule's effects are hard to quantify. But it forms a foundation -- like the Sec. Act of 1940 for a better industry and maybe better rules in the future.

The time is now for the investment industry to shed its shameless culture or pay a steep price

Anthony Scaramucci

Andy Puzder

Scott MacKillop

The days when RIAs were the outsiders at the 401(k) party are fast coming to a close. What's new is that the mass of 401(k) assets 
is getting critical at about $3 trillion; fiduciary advisors are getting appreciated; fat fees and questionable kickbacks are getting exposed and stepping out of line is getting dicier as the Department of Labor tightens the regulatory screws.

The old reasons why the 401(k) business is attractive are still in place: there are fresh assets pouring in every month and when employees leave jobs or retire, they produce rollovers that build up IRA accounts for financial advisors. The drawbacks of getting into the 401(k) business are still in place, too. Dealing with retirement assets is really a second line of business and it remains -- unless you overcharge with hidden fees -- a low margin business with high potential fiduciary liabilities.

Still, the outsourcers, infrastructure and accumulated knowledge for RIAs to capitalize on is growing daily and a the mega-shift of assets away from brokers is making the 401(k) business riskier and riskier -- to ignore.

401(k) Stories

The past two years have been some of the most momentous in the relatively short history of the RIA profession. Legislators and regulators have been gradually embracing the fiduciary standard, though whether it will fully apply to everyone calling themselves advisors remains to be seen.

The Department of Labor’s crusade to lower costs and increase transparency in retirement plans means a spate of new regulations affecting advisors and brokers in that market. Dodd-Frank Financial Reform, meanwhile, continues to unroll across the profession, with the biggest change being a shift to state oversight of RIAs with less than $100 million AUM. In this section, you’ll find continually updated RIABiz.com coverage on all these topics.

RIA Compliance

Enough feeble excuses and convoluted rationalizations for delaying the DOL rule

The time is now for the investment industry to shed its shameless culture or pay a steep price

FAA

Steve Setchfield

brooke southall

Laura Tarbox,

Related Moves

June 14, 2021 at 8:41 PM

RIABiz Directory

White Paper Postings

Special Sections

Common Tags

Recent Articles

Popular Writers

RIABiz

Directory

Archives

Connect